Ikigai Asset Management’s Chief Investment Officer thinks a setup never seen before in crypto history will push Bitcoin (BTC) and Ethereum (ETH) to new all-time highs (ATHs).
In a lengthy thread on the social media platform
“BTC essentially has a free walk to ATHs.
We just got spot BTC ETFs, which unlock safe access to BTC for trillions of dollars that weren’t there before.
The halving will take a few more months.
The Fed is likely to cut rates several times this year. Stocks are at ATHs and look like they’re heading higher…
We can debate the pace to ATHs (1H-24, 2H-24, 1H-25) and we can debate how far past previous ATHs we’ll ultimately go this cycle ($75,000, $90,000, $100,000, $120,000, $180,000), but the path to ATH looks incredibly simple.
Crypto will have to do very little ‘work’ to get BTC to the high $60,000s. It will probably just ‘happen’ because we have ETFs and the Fed is easing. We’ve never had a setup like this before.”
The halving, which halves BTC miners’ rewards, is expected in April.
At the time of writing, Bitcoin is worth $43,022.
Kling says Ethereum also has the same setup. But instead of halving, Kling says Ethereum relies on its burn mechanism, which destroys a small amount of ETH with each individual transaction.
Ikigai’s director also believes that an ETH on the spot market is likely to be approved in the coming months.
“Essentially the same setup as above is also in effect for ETH, just delayed by three to twelve months.
For the exact same reasons the SEC was forced to approve mockery [BTC] ETFs (lost the Grayscale decision; the court ruled that if you have BTC futures and BTC futures ETFs, you must allow spot BTC ETFs), the SEC has been forced to approve ETH ETFs.
We can discuss the timing of the approval – March? Probably too early. Be able to? Certainly possible, but perhaps a bit early. August? It feels about right.
I think it’s quite unlikely that we won’t have a spot ETH ETF in a year.
Combine that with Fed rate cuts and the reflexivity inherent in the ETH burn mechanism, and I think ETH also has a free walk to ATHs, which are up about 100% as of now. Again, reasonable minds may disagree on the timing and how far past previous ATHs ETH will go this cycle, but it basically seems like a free walk.
We’ve never had a setup like this before.”
At the time of writing, ETH is trading at $2,304.
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